Caribbean Region: Review of Economic Growth and ... - USITC

and is one of the fastest-growing industries. Estimated at 90 percent, the United States is the main source oftourist arrivals. Belize has recently been attracting offshore service operations such as telemarketingoperations, in part because of the availability of English-speaking labor.The agricultural sector is a key contributor to employment and merchandise exports; the main agriculturalproducts include bananas, cacao, citrus, sugar, fish, shrimp, and lumber. Sugarcane is produced on about onehalfof Belize’s farmland. Citrus (oranges and grapefruit) and banana production has been relatively flat since2000, with fluctuations correlated with weather conditions (especially hurricanes and flooding). Naturalresources include timber, fish, and hydropower.Belize’s main industrial activities include apparel production, food processing, construction, and oilextraction. The manufacturing sector is based primarily on agricultural processing and food and beverageproduction; approximately 90 percent of manufacturing is based on input from or for the agricultural,fisheries, and forestry sectors. These activities include the processing of sugarcane into sugar and citrus fruitinto concentrate. Some manufacturing of apparel is done with U.S. fabric for re-export to the United States,though the industry has been in decline as a result of increasing international competition. After the discoveryof a small commercially viable petroleum deposit, petroleum extraction began in 2006. As of August 2006,up to six companies had been issued petroleum exploration licenses. All of Belize’s oil is exported, as thereare no local refining facilities. Excluding petroleum extraction, manufacturing activity contracted in 2005and the first part of 2006.Domestic industry is limited by the relatively low labor productivity and high cost of energy, as well as asmall domestic market and limited investment in infrastructure. For example, large land areas remainundeveloped as a result of inaccessibility due to the lack of necessary road infrastructure. Though access toutilities is good, electricity is more expensive in Belize than in neighboring countries. Thetelecommunications system is considered above average. Economic growth is also constrained by a lack ofskilled labor and technical personnel.4-32